Mocked By Moscow: Russia Understands What Geithner Does Not

Even Former Marxists Know How To Do Bailouts

First we were mocked by Pravda.  Now, if leaked reports are true, our bank bailouts will be further exposed as the morally-destructive giveaways to the banking class that you know them to be.  Even the former followers of Trotsky and Marx know how to conduct a bailout; you gain control of failed banks in exchange for government cash.  Russia will reportedly demand board seats and veto rights from all aggrieved institutions.

In a few months don't be surprised if you hear that Marx and Castro have embarked on a global-influence tour proposing debt-to-equity conversion for failed bank bondholders. Stranger things.

From the FT:

Russia is looking at a bail-out of its banks that would go further than the emergency action taken by the US, amid growing fears that bad loans could paralyse the country’s economy.

Igor Shuvalov, deputy prime minister, will consider taking stakes in troubled banks when a group of experts on the financial crisis meets on Friday to discuss ways to recapitalise Russia’s banking system, according to a draft proposal seen by the Financial Times.

The proposal, one of several under consideration, would see the government issue OFZ treasury bills, a type of bond, to boost the balance sheets of the biggest banks. In return, the state would receive preferred shares.

Unlike the US bank bail-out, the Russian scheme would see the government take board seats and have veto rights.

Analysts said such a plan would allow banks to declare the true level of their bad loans and, once their balance sheets were cleaned up, enable them to start lending again in 2010.

About $100bn in domestic loans fall due by the end of the year and the central bank has said bank profits would be wiped out if non-performing loans reached 10-12 per cent of the total.

With high interest rates and a dearth of new credit, bankers say they fear non-performing loans could hit as much as 20 per cent of overall credit portfolios by the end of the year.

Comments

[DailyBail]

Great Read on Paul Voclker

http://www.bloomberg.com/apps/news?pid=20601109&sid=atBbIcvSgrFs#

[DailyBail]

Mocked by Pravda

http://dailybail.com/home/mocked-by-pravda.html

[Sell Short]

DB,

This is the outrage of the day...

of course beside all the bailouts...

>>>Iranian cleric urges executing some protesters<<<

can you believe these criminal mullas??

[DailyBail]

@SS

What do you think will end up happening? How is this going to play itself out?

[DailyBail]

This is pretty bad. Unions never think their members should take a cut.

The U.S. Senate proposal to impose taxes for the first time on “gold-plated” health plans may bypass generous employee benefits negotiated by unions.

Senate Finance Committee Chairman Max Baucus, the chief congressional advocate of taxing some employer-provided benefits to help pay for an overhaul of the U.S. health system, says any change should exempt perks secured in existing collective- bargaining agreements, which can be in place for as long as five years.

The exception, which could make the proposal more politically palatable to Democrats from heavily unionized states such as Michigan, is adding controversy to an already contentious debate. It would shield the 12.4 percent of American workers who belong to unions from being taxed while exposing some other middle-income workers to the levy.

“I can’t think of any other aspect of the individual income tax that treats benefits of different people differently because of who they work for,” said Chris Edwards, director of tax policy studies at the Cato Institute, a Washington research group that often criticizes Democrats’ economic proposals. Edwards said the carve-out “smacks of political favoritism.”

http://www.bloomberg.com/apps/news?pid=20601103&sid=aDvu77pZr7k4

[DailyBail]

In late August of last year, Jim Cramer, a la CNBC Mad Money, predicted the housing market bottom would be reached by the third quarter of 2009. A week later, the prediction was fine-tuned in his widely read magazine article, selecting June 30, 2009 as the official day the housing market would find a bottom. The publication date of the article was September 7, 2008.

During the week this magazine article came out, someone told me they had attended an economic conference and there was no shortage of tongue-in-cheek debate on the Cramer's housing market prognostication. Would the housing market "bottom" on the morning of June 30th or the afternoon of June 30th? Inquiring economic minds wanted to know.


http://www.huffingtonpost.com/jonathan-miller/mad-housing-bottom-is-a-j_b_218622.html

[Sell Short]

@DB,
No One really know. The Turban head mullahs are very stubborn and they know their time is due. They also know if they dont come down hard, people want them all dead. Its a hard battle, but I think time and the world is behind the young generation. Time for change!!

Go New Iran!